Short Summary

2114: INDOCHINA-DAYLEAD AID 2 PHNOM PENH:
THE UNITED STATES AND CAMBODIA TODAY CONTINUE TALKS ON CIVIL AID WHICH WESTERN DIPLOMATIC SOURCES SAID WOULD BE ENOUGH TO MEET THE COUNTRY'S IMPORT NEEDS FOR THE WHOLE OF 1971.

Description

2114: INDOCHINA-DAYLEAD AID 2 PHNOM PENH:
THE UNITED STATES AND CAMBODIA TODAY CONTINUE TALKS ON CIVIL AID WHICH WESTERN DIPLOMATIC SOURCES SAID WOULD BE ENOUGH TO MEET THE COUNTRY'S IMPORT NEEDS FOR THE WHOLE OF 1971.

THE AID PACKAGE UNDER DISCUSSION IS MADE UP OF 70 MILLION DOLLARS (29.8 MILLION STERLING) IN ECONOMIC AID PLUS 8.5 MILLION DOLLARS (3.5 MILLION STERLING) AGRICULTURAL AID.

THE SOURCES SAID IT WOULD BE ENOUGH TO COVER ESSENTIAL IMPORTS TO MAINTAIN CAMBODIA'S BRUISED ECONOMY AND HER WAR EFFORT, BUT NOT TO FINANCE LUXURY PURCHASES LIKE THOSE WHICH HAVE POURED INTO NEIGHBOURING SOUTH VIETNAM.

THE AID IS DESIGNED TO MAINTAIN THE FLOW OF IMPORTS INTO THE CAMBODIAN ECONOMY AT THE PRE-WAR LEVEL OF 1965, THEY ADDED.

THE U.S. IS ALSO GIVING CAMBODIA 165 MILLION DOLLARS (70.1 MILLION STERLING) OF MILITARY AID. MORE 2114: INDOCHINA-DAYLEAD AID 2 PHNOM PENH:
2114: INDOCHINA-DAYLEAD AID 2 PHNOM PENH:
THE SOURCES SAID THE MEETING WHICH STARTED HERE YESTERDAY IS CONCENTRATING ON THE AGRICULTURAL AID AND A 10 MILLION DOLLAR (4.1 MILLION STERLING) APPROPRIATION FROM THE MAIN FUND FOR EMERGENCY IMPORTS.

THE TALKS WERE EXPECTED TO LAST UP TO TWO WEEKS BETWEEN THE DELEGATIONS LED BY U.S. AMBASSADOR EMORY SWANK AND CAMBODIAN FOREIGN MINISTER KOUN WICK.

THE ALLOCATION OF THE REMAINING 60 MILLION DOLLARS WOULD BE THE SUBJECT OF FURTHER NEGOTIATION AFTER THE CAMBODIAN GOVE HAD CONSULTED THE INTERNATIONAL MONETARY FUND IN THE COMING MONTH, THE SOURCES ADDED.

THE AID IS NOT A DIRECTLY AIMED AT SWELLING THE CAMBODIAN GOVERNMENT'S REVENUES. BUT A PROPOSAL TO SEND THE GOVERNMENT FREE SURPLUS U.S. TOBACCO COULD BENEFIT THE BUDGET IF THE GOVERNMENT SOLD IT TO LOCAL MANUFACTURERS, THE SOURCES SAID.